Bitcoin and Ethereum prices drop sharply, over $170 million longs liquidated

The price of bitcoin fell below $59,000 late Tuesday night. CoinGecko Data reached the lowest drop not seen in a week. The drop of more than 3% was echoed by Ethereum, which fell below $2,500.

According to the report, the sudden price drop led to over $170 million worth of long-term sell-offs in a single hour. CoinglassThat upset investors who had bet on a rise in asset prices. Those liquidations were dominated by BTC and ETH investors, with longs of $65 million and $52 million, respectively.

Bitcoin saw a strong rise above $63,000 on Friday after US Federal Reserve Chairman Jerome Powell hinted at cutting interest rates next month. But before the latest drop, BTC's price fell yesterday.

The price of Solana (SOL) is also down more than 6% for the day to $147. Tokens including XRP and Dogecoin (DOGE) also saw declines of more than 5% in 24 hours on Tuesday.

There appears to be no particular reason behind this sharp change, as the US stock market closed with almost stable trading throughout the day on Tuesday.

Some analysts have pointed to recent fluctuations in Bitcoin’s price as a state of “equilibrium,” with a recent report from crypto analytics platform Coinglass saying it could precede a period of “high volatility.”

Meanwhile, in its latest report, Fairlead Strategies warned of a “seasonally weak period in September.” The firm uses technical analysis for its forecasts, and suggests “the next two months of price corrective action.”